Useful next calculations
Rates and sources
SDLT/LTT/LBTT bands vary between England, Wales, Scotland and Northern Ireland. Use the appropriate calculator.
Source: HMRC / Welsh Revenue / Revenue Scotland. Check the linked guidance and any live quote before acting.
When to use this calculator
- Before buying, renting, refinancing or reviewing a property investment.
- When you want to compare cash flow, tax, yield or ownership costs.
- When you need a fast estimate before speaking to an agent, lender or adviser.
- When you want to see how a rate or price change moves the result.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Property Price (£) | £250,000 |
| Monthly Rent (£) | £1,200 |
| Annual Expenses (£) | £4,000 |
| Hold Period (Years) | 10 years |
For those figures the calculator returns:
- Annual profit: £10,400.00
- Total profit (10y): £104,000.00
- ROI: 41.60%
Method & assumptions
This calculator estimates the return on investment from a residential buy-to-let property in the UK. It calculates both gross and net rental yield, annual cash flow after mortgage payments and operating expenses, and return on equity based on the capital you have actually invested. Inputs include purchase price, deposit, mortgage rate, term, monthly rent, letting agent fees, insurance, and a maintenance and void allowance. The calculator applies the Section 24 mortgage interest restriction when you specify personal ownership and your income tax band. It does not model capital appreciation, capital gains tax on sale, or the tax treatment of limited company ownership. Results are indicative estimates to help compare potential investment opportunities and should not replace advice from a qualified financial adviser or accountant.
Common mistakes
- Comparing rent and ownership costs without including taxes, fees and maintenance.
- Using purchase price alone without testing financing or vacancy assumptions.
- Relying on yield or growth in isolation instead of reviewing the full property case.
- Using the wrong national transaction-tax calculator for the purchase location.
What to do next
- Run a second scenario with a higher rate or lower rental yield.
- Compare the result with a buy-versus-rent or mortgage calculator before making an offer.
- Use the matching national transaction-tax calculator for the purchase location.
- Note the key figures to share with your solicitor or lender.